Exam 4: The Market Forces of Supply and Demand

Figure 4-1 ​ -Refer to Figure 4-1. The movement from point A to point B on the graph shows

A decrease in supply will cause an increase in price, which will cause a decrease in quantity demanded.

A monopoly is a market with one

Does a change in the price in a market result in a shift of the demand curve or in a movement along the demand curve?

Figure 4-13 ​ -Refer to Figure 4-30. In this market for iPhones, the technology improves while all other factors remain constant. Explain the change(s) in the equilibrium price and quantity.

Suppose scientists provide evidence that people who drink energy drinks are more likely to have a heart attack than people who do not drink energy drinks. We would expect to see

Table 4-4 ​ ​ ​ ​ -Refer to Table 4-4. If these are the only four sellers in the market, then the market quantity supplied at a price of $4 is

Which of the following is not held constant in a supply schedule?

If the supply of pencils, a substitute for pens, increases, what will happen to the equilibrium price of pencils and to the equilibrium price of pens?

An increase in the price of blue pens will increase both the equilibrium price and quantity in the market for black pens.

Figure 4-5 ​ Firm A Firm B -Refer to Figure 4-5. If these are the only two sellers in the market, then the market quantity supplied at a price of $8 is

Figure 4-13 ​ -Refer to Figure 4-30. In this market for iPhones, the technology improves while all other factors remain constant. Which curve(s) shift(s) and in which direction?

A surplus is the same as an excess demand.

Workers at a bicycle assembly plant currently earn the mandatory minimum wage. If the federal government increases the minimum wage by $1.00 per hour, then it is likely that the

Figure 4-3 -Refer to Figure 4-3. The shift from D_b to D_a in the market for potato chips could be caused by

In a competitive market, the quantity of each good produced and the price at which it is sold are not determined by any single buyer or seller.

Which of the following events would cause a movement upward and to the left along the demand curve for olives?

Which of the following demonstrates the law of supply?

Sellers respond to a shortage by cutting their prices.

When quantity supplied exceeds quantity demanded at the current market price, the market has a surplus, and market price will likely rise in the future to eliminate the surplus.